Good morning, 

Here is today's Texas Minute.

– Brandon Waltens 

Monday, January 25, 2021
Modify your email preferences.

• The process of writing and passing the state budget for 2022-2023 has officially kicked off, with both the Texas House and Senate filing their base budgets to act as the starting point as the legislative session continues.
   
• Passing a balanced budget is one of the only constitutionally mandated tasks of the state Legislature. This session, however, lawmakers have far less leeway than they have in previous years.
   
• Earlier this month, Comptroller Glenn Hegar told lawmakers they would face a $1 billion shortfall, as well as a projected 0.4 percent decrease in general revenue, in light of the economic effects from coronavirus-related shutdowns. 

• Both chambers allocate $119.7 billion in general revenue spending, $3.2 billion less than the 7.06 percent spending limit adopted by the Legislative Budget Board in November 2020.
   
• Neither budget relies on increased taxes or taps into the Economic Stabilization Fund, also known as the rainy-day fund.

• “This is not the first time Texas has seen difficult economic times. We are committed to maintaining our fiscal integrity using the conservative budget principles that will ensure Texas remains a job-creating engine for the nation and a major player in the global marketplace.” –Lt. Gov. Dan Patrick
   
• “The decisions we make during the 87th Legislative Session will have lasting effects on the future of our state, which is why the House will work to improve our business climate, foster economic prosperity, and do what’s right for our students.” –House Speaker Dade Phelan

• In a time when so many Texans have struggled under coronavirus-related shutdowns, is it enough for the Legislature to simply keep spending in check?
   
• Texans for Fiscal Responsibility says, while it’s encouraging that the proposed budgets don’t raid the rainy day fund or increase taxes, they do nothing to provide tax relief.
   

• “As proposed, the budget fails to adequately prioritize tax relief for overburdened Texans struggling in the face of high taxes, government mandates, and shutdowns. Texas lawmakers should prioritize a full reopening of the economy and further regulatory and tax relief for hardworking taxpayers.” –TFR President Cary Cheshire
   

• After taking last week off, the Legislature is scheduled to return tomorrow, January 26, to continue their legislative session.

Your Federal & State Lawmakers